BCI returns 9% in fiscal 2018, buoyed by global equities

The British Columbia Investment Management Corp. is reporting a nine per cent return for the fiscal year ending Mar. 31, 2018, a slight drop from its 12.4 per cent return in the previous year.

The return generated $1.9 billion in added value, bringing the organization’s assets under management to $145.6 billion. It also increased its internally managed assets to 73.3 per cent from 63.5 per cent in 2017, and committed $11.5 billion to assets such as infrastructure, mortgages, private equity, real estate and renewable resources.

Over the five-year period, the BCI’s annualized return was 9.9 per cent against a benchmark of 8.7 per cent, adding $5.8 billion in value. For the 10-year period, its annualized return was 7.4 per cent against a benchmark of 6.8 per cent, adding $6.6 billion in value.

One of the return’s key contributors was the outperformance of global equities relative to their benchmark, noted a press release. As well, it credited strong performances in illiquid asset investments, with infrastructure, private equity and renewable resources outperforming for the calendar year and delivering returns above benchmark.

“BCI has a proud history of investing for British Columbia’s public sector,” said Gordon J. Fyfe, chief executive officer and chief investment officer of the BCI, in the release. “Our transformation to an active in-house asset manager, diversifying globally and with a focus on illiquid investments, ensures that we continue to provide the returns our clients need.”

The organization’s asset mix includes: 44.3 per cent or $64.6 billion in public equities; 21.8 per cent or $31.7 billion in fixed income; 14.4 per cent or $21 billion in real estate; and eight per cent or $11.6 billion in infrastructure.